Abstract
As the business environment tends to change suddenly, firms have to create new valuable knowledge continuously and develop new products in rapid succession responding to the change of the environmental factor of which example is consumers' needs. Capability of knowledge creation or resource rearrangement which causes innovation is the key for the firm's survival in the market which is characterized by short product life cycle. Teece et al. (1997) named such an organizational capability "dynamic capability", and so did Eisenhardt and Martin (2000). This paper shows Kao and Dai Nippon Printing as examples and studies them in order to gasp the essence of the capability. They create rich and valuable knowledge and new products under the emergent process which contains intellectual interaction and knowledge combination.
